# Introduction to Forex Trading MACD Usage

rebateforexbroker Forex Rapid Rebate an abbreviation for MovingAverageConvergenceDivergenceThis tool is used to identify whether the new situation is up or downAfter all, the first task of our operation is to make moneyFrom the chart of MACD, you will usually see three numbers:①:The first number is used to calculate the rebateforexfee average The first number is used to calculate the number of cycles; ②: the second number is used for cashback forex moving average cycles; ③: and the third number is used to calculate the average between fast and slow. It: ①:12 represents the 12 rebateforex moving ForexRapidRebate; ②:26 represents the 26 slower moving averages; ③:9 represents the 9 averages in between This is called the vertical line histogram (the green line in the chart above) When it comes to the MACD lines, there is a common misconception that these two lines are the price of the moving average. The histogram easily depicts the difference between the faster and slower moving averages If you look at our original chart, you will see that the histogram changes more as two separate moving averages This is called divergence, as the faster moving average is slowly moving away from the slower moving average The closer the moving averages are to each other, the smaller the histogram becomes This is called focused movement, as the faster moving The faster moving averages are getting closer to the slower moving averages Okay, so now you know what the MACD is, so well show you what the MACD indicator can do for you How to use the MACD for action Because there are two different moving "speed" averages, the faster one is more likely to reflect the price change of the new When a trend occurs, the faster line is the first to react and eventually crosses the slower line When this "crossover" occurs, the faster line starts to move away from the slower line and it often indicates that a new trend has formed Since the MACD indicator represents other moving averages, you can imagine that it lags behind the price However, the MACD indicator is still one of the most popular tools for investors One of the most favored tools